I see an effective borrowing rate of ~40% for a $500 loan repaid in 3 months (with some simplifications), including interest expense and the $15/$50 fee. I understand that's better than traditional PayDay loan places, but something tells me that its not enough to break the indebtedness cycle.

3:30 pm May 20, 2011

Louis wrote:

I need $500. right now but it would cost me $150. in loan fees and interest. What is the time period that he loan has to be paid in. Does it get nasty if I happen to get behind. I am trying to create an online income but it is a lot harder than looks and there are a bunch of crooks that take you money and don't perform. At $37. to $49 a pop it can very quickly drain the bank account. I am not real comfortable with people being able to get into my bank account. Example below $500. @40% = $200. = $150. or $350 cost for a $500. lean for 3 months. That's damn near $300./mo to pay back a $500.loan . that is robbery.

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